U.S. economy contracts again amid recession signs
The Commerce Department shows GDP fell 0.6 percent in the April to June quarter marking a second consecutive quarterly contraction. Consumer spending grew 1.5 percent while inventories declined and government and business investment dropped. The Fed has raised rates four times this year, aiming for a soft landing as inflation stays high and housing and retail activity slow. Despite weak growth, the job market remains resilient with about 470,000 jobs added monthly and unemployment at 3.5 percent.
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Stocks rally as Fed speech approaches
U.S. stocks rose led by the S&P 500 in a session ahead of Fed Chair Jerome Powell's highly anticipated Jackson Hole address. The Dow gained about 322 points and the Nasdaq rose 208 as investors weighed jobless claims, GDP revisions, and inflation signals while awaiting guidance on future rate moves.
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NLRB charges Starbucks over pay boosts for nonunion stores
The National Labor Relations Board's Seattle office filed a complaint charging Starbucks with violating labor law by offering pay raises and benefits at nonunion locations while withholding them from stores that voted to unionize. Workers United filed charges amid more than 220 unionized U.S. Starbucks stores. The case, one of at least 20 against Starbucks, proceeds to an administrative law judge with a hearing set for October 25.
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California moves toward phasing out gas powered cars
California seeks to ban new gas fueled vehicles by 2035 with rules requiring all new cars trucks and SUVs to run on electricity or hydrogen. The plan aims to cut emissions in half by 2040 and set the world's most stringent transition standards prompting other states and automakers to accelerate zero emission vehicle production.
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